Corporate Governance

Definition ∞ Corporate governance refers to the system of rules, practices, and processes by which a company is directed and controlled. In the context of centralized entities within the crypto space, this includes the structures and mechanisms through which management is held accountable to shareholders and other stakeholders. It covers areas such as executive compensation, risk management, and ethical conduct. Effective governance ensures operational integrity and investor protection.
Context ∞ Crypto news often reports on corporate governance issues within centralized exchanges, digital asset custodians, and blockchain development companies. Concerns frequently arise regarding transparency, accountability, and the influence of key individuals over project direction or asset management. Regulatory scrutiny increasingly focuses on establishing clear governance frameworks to protect consumers and maintain market stability.